The Japanese yen appreciated past 158 per dollar on Monday, reaching a one-week high as renewed geopolitical and trade concerns boosted demand for safe-haven assets. US President Donald Trump threatened new tariffs on eight European countries in a bid to gain control of Greenland, drawing criticism from European leaders. Domestically, investors focused on the Bank of Japan’s policy decision this week, with rates widely expected to remain unchanged and markets eyeing a possible move in June. Markets also considered the possibility that Prime Minister Sanae Takaichi may call a snap election next month to consolidate power and push expansionary fiscal policies. Takaichi is reportedly contemplating pledging to suspend the 8% sales tax on food as part of her campaign, a move aimed at easing Japan’s rising food costs.
